Dragon happy with chain’s performance

RTÉ Dragon Bobby Kerr said yesterday he is very happy with how his Insomnia coffee chain business performed last year as pre-tax profits increased by 45% to €99,403.

Accounts filed by Redcoral Catering Ltd to the Companies Office show the firm recorded the increase in profits after gross profit rose from €8.22m to €8.33m in the 12 months to the end of December last.

In an interview yesterday, the Newstalk presenter said: “The performance is not spectacular, but I am very happy with it. It is a marked improvement on before and we are paying off the bank.”

Mr Kerr — who confirmed at the weekend that he is stepping down as a Dragon — said he plans to open a further seven Insomnia outlets between now and the end of the year. Mr Kerr said this will involve the employment of another 60 people, that will result in almost 300 staff being employed by the group.

Mr Kerr said that the group will record a 5% increase in sales this year with value propositions or deals such as a coffee and a sandwich for €5 “really driving” growth.

The Insomnia business is made up of 34 own shops and 31 Insomnias located in Spar shops along with 140 Insomnia machines at various locations. The chain has recovered from a €1.1m loss in 2009 and Mr Kerr said: “The recovery hasn’t just happened. We have worked very hard at it by cutting costs and driving sales.”

Mr Kerr confirmed that the business will continue to expand in 2013.

The pre-tax profit last year takes account of bank interest payable of €171,704 and a waiver of group company balances of €50,966.

Directors’ aggregate remuneration for Mr Kerr and his colleague, Harry O’Kelly, last year dropped from €407,307 to €281,877.